The government said it had been able to avoid granting a substantial sum to the two main gas companies, Shell and Laufs by adjusting the rates of tax paid by them.

Trade, Commerce and Marketing Development and Consumer Services Minister Bandula Gunawardane said the tax adjustment is normal when pricing gas in the local market in conformity with the fluctuations in the world market for a two- month period.  He said Shell Gas had asked for a hefty price hike of Rs. 295 a domestic gas cylinder while Laufs had insisted on a Rs. 458 price increase.

We only allowed Laufs to increase their prices, that too only by Rs. 5. Shell Gas prices will remain unchanged for the next two years. The pricing is done according to a formula determined by the Supreme Court,” he said.

Meanwhile, Minister Gunawardane was to lead a delegation to Myanmar and Thailand to negotiate a deal to import 50,000 tonnes of rice, to be kept as an emergency stock.  They are expected to hold talks on bilateral trade between the countries. The delegation is expected back on November 5.